Business Strategy and Analysis

This assignment delves into the critical concepts of business strategy. It provides an in-depth explanation of the SPACE matrix, a strategic analysis tool used to evaluate a firm's position within its competitive landscape. The document utilizes various sources to define key terms and illustrate how business strategy is implemented through frameworks like the SPACE matrix.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1.1 ALDI's mission, vision, goals, objectives and core competencies...................................1
1.2 Factors which must be considered while formulating strategic plan...............................2
1.3 Usefulness of techniques while developing the strategic plan.........................................3
2.1 Organisational audit..........................................................................................................4
2.2 Environmental audit.........................................................................................................6
2.3 Stakeholder's analysis.......................................................................................................7
2.4 New strategy for ALDI.....................................................................................................8
PART 2............................................................................................................................................9
3.1 Appropriateness of suitable strategy................................................................................9
3.2 Justification of chosen strategy........................................................................................9
PART 3..........................................................................................................................................10
4.1 Roles and responsibilities of personnel..........................................................................10
4.2 Resource requirement for strategy implementation.......................................................11
4.3 Smart objectives.............................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business need suitable and appropriate strategy which support in order to enhance and
promote positive and effective working (Akter and et. al., 2016). Chances of failure get rises
when management do not frame suitable and appropriate action plan to deal with operations at
each and every level. In such aspect, ALDI need to frame suitable and appropriate strategy so
that they lead to get sustain into keen competitive world in an effective manner. For this purpose,
management need to understand the process of strategic planning which signifies clear mission,
vision and objectives as well as suitable strategic business plan. Along with this, new strategy
need to get prepare whenever an organisation has to deal with any kind of change of alteration
with appropriate evaluation of strategies. When business understand each and every approach
properly then they will have to implement it in a suitable manner.
PART 1
1.1 ALDI's mission, vision, goals, objectives and core competencies
ALDI is doing business in sector of retail and set up in United Kingdom. Company is
selling variety of items as well as services to their users. Along with this, they are having almost
10000 stores across the world. It is fundamental for manager to prepare appropriate procedure
and strategies; therefore, workers will easily complete task effectually (Budayan, Dikmen and
Birgonul, 2015). Superior has to maintain healthy surrounding at premises; as a result, they will
be able to retain employees for maximum time span. Coveted targets has to be achieved within
sufficient period of time (Business Strategy, 2018).
Vision: This statement is much associated with organisation. By formulating effective
as well as efficient methods, superior enable to compete their contenders at
marketplace appropriately. Therefore, they will improve market share and in
addition reputation. Main vision of firm is that, they want to increase their
business operations all over the world.
Mission: It is considered as a guidelines and employees have to follow these as by doing
this, they enable to survive at market for maximum time duration. It is must to
set some objectives which they have to attain properly. By knowing needs and
wants of clients they are able to fulfilling it, which aid them to maintain
customer base effectively. As a result, profits and market share of association
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will easily get increased. This will help them to capture attention of numerous
individuals towards them. Along with, quality of their products and services
are much effective which assist them to beat their competitors at marketplace.
Objectives: It can be related to long or short period and must be attained by people within
limited period of time. For this, employer has to formulate some techniques as
well as strategies. For instance: primary goal of association is to fulfil
requirements of people according to their needs and wants.
Goals: It is must for manager to decide targets which has to be attained by them
within certain time period. Coveted objectives need to be measurable; thus,
firm able to acquire development and enhancement appropriately.
Core
competencies:
It is necessary for firm to prepare policies effectually so that they will compete
their rivals at marketplace. This will help them in improvisation of revenues
and in addition market share. Prices of goods and services need to be
affordable as this assists to capture attention of many other persons.
1.2 Factors which must be considered while formulating strategic plan
Manager has to considered many components when they are developing plan for
company. Some of them are discussed underneath: Communication: It is required for superior to keep up an open interaction at workplace.
Therefore, staff members will easily share views or opinions with each other. This aids to
eliminate their hesitation. It is necessary for an employer to provide them sufficient data
and information which is required for them to accomplish coveted targets and goals. They
will take support of employees into decision making process. This will help into their
success and enhancement (Burlton, 2015). Innovation: Company needs to develop items and services by implementing new ideas.
This will assist to get attention of many persons towards them. If products are
manufacturing uniquely then, enterprise will easily take benefits from their rivals and in
addition keep up client base.
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 Culture: It has been examined that, each person is having their own beliefs and values
which are following by them. In this context, there are some workers at ALDI who never
accept alteration easily.
1.3 Usefulness of techniques while developing the strategic plan
It is necessary for superior of ALDI, to formulate some strategies so that they will
achieve desired goals within certain time span. They will take assistance of BCG matrix and this
will be comprehend by following description: Stars: As indicated by this, market share of organisation is very high and they are
growing rapidly. This will help them to compete with competitors at marketplace. By
getting more finance, firm enables to produce more goods as well as services. Cash cows: According to this cell, market share of association is effective but they are
not growing. Along with, company is having best position at market which help them to
get loyalty as well as trust of people. Dog: Enterprise who comes under this cell, are not having appropriate market share as
well as growth. If they want development then, it is essential for them to reduce
unnecessary expenses from business operations. Along with, they will create goods in an
innovative way (Chang, 2016).
 Question mark: Firm takes hazards to produce items and services creatively. As a result,
they will be able to increase client base and revenues.
Certain pros and cons are connected to BCG matrix which are stated as below:
Advantages Disadvantages
 This matrix is using by big companies.
 Superior and subordinates will easily
understand this method and will use in
firm.
 By using it, superior enables to evaluate
products as well as services
appropriately.
 If an association is utilizing it, then they
are not able to comprehend marketplace
effectually.
 Development and growth of an
enterprise will evaluate through their
profits.
 As this methodology is much simpler
so that it cannot be applicable into
complex conditions.
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SPACE matrix: Certain components will be include into this, they are mentioned as below:
 Benefits from competitors
 Environmental stableness
 Financial strength
 Industry effectiveness
By combining above mentioned factors, company will acquire:
 Conservative
 Competitive
 Aggressive
 Defensive
Illustration 1: SPACE matrix
(Source: SPACE matrix, 2018)
There are some advantages of using this matrix which are described below:
 People will understand this technique effectually.
 With aid of this, manager of organisation will identify their position at market.
 They will compete with rivals effectively (Ghosal, 2015).
2.1 Organisational audit
It is fundamental for an employer to find out opportunities and risk related to business.
They have to determine both kind of components, i.e. internal and external, as this will provide
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influence to operational activities either in a direct or indirect manner. As a result, they will
satisfy requirements of customers within limited time duration. By taking support of financial
statements, manager able to take judgement effectually. Therefore, they will take assistance of
SWOT investigation, which is stated as below:
Strength:
 Company is having an efficient goodwill which assist them into profit enhancement.
 They are providing quality services as well as items to users at affordable values. ALDI's market share is much high as compare to other affiliations who are doing their
business in similar kind of sector.
Weaknesses:
 Working of ALDI is not proficient in other nations.
 Many states are not knowing about goods and services of ALDI. It has been examined that, company is not using new and unique methods as well as tools
into their business operations which is providing impact to their goodwill in an adverse
manner (Grant, 2016).
Opportunities:
 Organisation is having an effective market share; therefore, it is not difficult for them to
launch new items for people. If they produce goods by implementing new techniques
then, this will aid them to capture attention of many other persons towards them. As a
result, revenues of firm will get improved. To increase customer base as well as revenues, they will cater items to people on online
sites.
Threats:
 Many companies are operating their business in same sector in which ALDI is working
and they are continuously expanding business operation. Therefore, it is required for
ALDI to enlarge their business activities to reduce risk. So that, they enable to compete
rivals at competitive world.
 Many items of firm is acquiring growth; thus, they have to eliminate them from their
portfolio, otherwise it will hamper their market share and in addition goodwill (Higgins,
Omer and Phillips, 2015).
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2.2 Environmental audit
It is associated with extrinsic factors which will be divided into two parts: one is macro
and other is micro. For micro evaluation they will take support of Porter's five forces, which is
described as below:
Porter's five forces: Threat of new entrants: It is must for company to develop policies or processes for
business. Thus, any other enterprise will not provide impact to them. But if any
association is taking entry in the same segment then, this will influence business of
ALDI. But, this sort of activity will aid to enhance employment chances for individuals. Bargaining power of suppliers: Enterprise needs to keep up an appropriate relations
amongst superior and subordinates. Competition is much high at market; so that some of
affiliation is selling goods at less values. In context of ALDI, they also have to do the
same. Bargaining power of buyers: Numerous companies at market are doing business in same
segment. Thus, bargaining power of buyers are much high which will providing influence
to the revenues of organisation (Johnson, 2016). Hence, if they want to decrease loss then
they have to produce goods as per requirement of people. Threat of substitute: It is must for firm to develop variety of items, if they are not doing
this then, this will affect their profits and rivals will take benefits from them.
 Rivalry amongst existing firms: There are some items which are selling by only few
companies; so that competition is less. Rather than this, many organisations are selling
those items which are providing by numerous firms to buyers; as a result, competition is
high.
For macro analysis company will take assistance of PESTLE:
PESTLE:
Political Organisation is doing business in many countries; therefore, they need to
follow rules and regulations of that state. If they are doing this, then they will
not run business effectually.
Economical Modifications in rate of return will provide influence to business of ALDI.
Therefore, they have to use best techniques as well as tools of marketing so
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that they will gain attention of many persons.
Socio-cultural Firm has to cater qualitative goods and services to individuals as this will aid
them improve profits and market share.
Technological It is must for association to use unique methodologies and methods into
business operations. This will help them to reduce unwanted cost and
production will complete within certain period of time.
Environmental Company has to reduce unnecessary wastages from procedure of working.
As a result, they will be able to secure environment from any sort of harmful
exercise.
Legal It is necessary for an organisation to implement laws as well as regulations as
this will aid them to run business effectually. Along with, they will easily
keep up standard of items and in addition services.
2.3 Stakeholder's analysis
Shareholders are foremost element for each and every kind of company as they render
fund to them so that, firm will easily run their business operations. Along with, it aids them in
business expansion. When manager of enterprise is formulating strategies or policies then it is
mandatory for them to consider their interest. They have to take judgement wisely without
hurting their participation. Bondholders will be classified into two sectors, i.e. internal and
external (Leonidou and et. al., 2015).
Stakeholder analysis is considered as a process which assist to acquire support from
people. Many kinds of bondholders, such as:
 Primary
 Secondary
 Key shareholders
It is must to evaluate them and for this some tools will be utilized by manager. Thus, desired
goals will be achieved effectually.
 Risk
 Bondholders interest
 Components which will provide impact to other shareholders
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 If stakeholders nature is adverse then this will cater influence to reputation as well as
revenues of affiliation.
Therefore, it is must for manager to consider them at the time of formulation of plan.
They have to considered both kinds of bondholders; such as intrinsic and extrinsic.
 Internal bondholders will comprise staff members, superior has to considered their
interest at the time decision making as this will affect their working performance either in
a direct or indirect manner (Leonidou and et. al., 2017).
 Superior of firm needs to cater some extra benefits to employees and this will involve:
incentives, paid leaves, commission, bonus and many others.
 Manager has to provide salary to staff members timely because this enables them to keep
up reputation at marketplace.
Henceforth, certain importance related to stakeholder investigation are mentioned as below:
 With assistance of this risk will be found out.
 Reduce negative impact.
 Help to cater motivation to people who are working in variant sectors.
2.4 New strategy for ALDI
In company, superior is required to frame strategies and policies through which they are
able to direct all staff members. This help employees to manufacture goods and services which
are according to people need and preferences. If firm deliver standardised items, then they are
able to increase number of customers. Hence this serve as support through which organisation
goals and objectives are accomplished on time. Superiors need to make changes in tactics so that
they are able to make improvement in their offerings according to market conditions. So
company is able to improve their profitability by implementing modern tools and techniques.
This make products and services which satisfy customers and sustain them for longer period. As
a result, plans which are efficient and benefit organisation to enhance their image and share of
marketplace (Linder and Williander, 2017).
As in case of ALDI, administration has build design for their system through which they
are able to position them superior than competitors brand. Company is able to attract and induce
people by offering them quality products and at feasible rates. This benefit firm to earn adequate
revenue through which they are able to carry out operations properly. Superior timely conduct
market survey to encounter about changes in people demand and requirements. Thereby
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manufacturing items appropriately so that they are able to deliver products to customers
whenever they required.
Company can also adopt policy through which they increase their business so that they
are able to utilise market opportunities. This will benefit management to enhance their profit and
market position. By expanding branches in various countries using merger and acquisition so that
they are able to build system superior than rival firms.
PART 2
3.1 Appropriateness of suitable strategy
Executive is required to formulate plan through which organisation progress and prosper.
By adopting adequate policies through which administration is able to take appropriate decisions
for their system. This had help ALDI to expand business in UK and make achievements by using
these tactics : Substantive growth: enterprise uses merger and acquisition to enlarge their business
through which they use opportunities available in marketplace (Moseley III, 2017). This
device can be implemented only if company is having adequate system. Limited growth: companies implementing this strategy will utilise resources efficiently;
by producing products according to people requirement. This will help superior to protect
system from unnecessary debts and enlarge business in various countries to increase their
customer base.
 Retrenchment: in organisation, manager is responsible that all staff members function
properly through which goals are accomplished within specified deadlines. They also try
to reduce expenses so that they are able to gain sufficient amount of revenue through
which firm sustain for longer period.
Therefore, firm is able to increase their market position by adopting substantive growth
concept; and thereby placing themselves superior than competitors brand (Pisano, 2015).
3.2 Justification of chosen strategy
Organisation is able to enhance their market share through which they improve their
returns. As in case of ALDI, superior formulate plan, which benefit firm to sustain for longer
duration. This company is advantage as they have opened branches in United Kingdom through
which they are able to increase customer base. As a result, they are able to compete with rival
firms such as Tesco, ASDA by offering quality items and at competitive rates.
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 Suitability: superior is required to frame strategies which are appropriate for their system
and is according to market conditions (Scholes, 2015). Feasibility: manager should keep modifying policies in according to customers
requirements so that system function effectively.
 Acceptability: this tactic is dependent upon investors. Manager need to provide positive
working environment through which they are able to get work done from subordinates.
Therefore, this can be concluded that firm using appropriate strategies and policies is able
to earn adequate profit by enhancing their system functionality.
PART 3
4.1 Roles and responsibilities of personnel
In company, there are many kinds of responsibilities or duties are performed by many
individuals appropriate. This will understand by following description:
Top level administration:
 It is must for higher authority to determine best way to complete task in an effective and
efficient manner. Along with, their main duty is to formulate latest methodologies or
tools so that workers will complete work effectually. They will provide training to employees which help them to improve their skills as well
as abilities; as a result, desired outcomes will achieved.
Middle managers:
 They need to render task to staff members; thus, they will attain desired goals as well as
targets (Ryu, Lee and Choi, 2015). It is must for subordinates to work according to set standard by monitoring their working
performance.
Consultants:
 They will formulate some methods or procedures for company and in addition cater some
directions to staff members so that they will complete task within limited period of time.
 It is essential to make an appropriate control over the activities of employees; therefore,
they enable to accomplish task timely.
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4.2 Resource requirement for strategy implementation
It is must for superior to utilize many types of policies or strategies into process of
working (Scholes, 2015). Henceforth, some of important resources which has to be taken into
under consideration at the time of implementation of strategy, these are stated as beneath: Human resource: It is required for an employer of firm to appoint candidate for job
according to their experience or skills. As a result, they will be able to accomplish needs
and wants of clients in an effective manner. Along with, will attain coveted targets within
limited period of time. Finance: Organisation needs to have sufficient finance so that they will buy required
resources for business and will run it in an effective way. This will assist them to
complete work within certain period of time. By doing this, they will easily take benefits
from competitors at marketplace. Along with, they will acquire opportunities from
market which is accessible for them. Technology: It is must for an enterprise to use latest tools as well as methods to develop
goods and services. As a result, unwanted cost will get reduced and quality will be
maintained. This will help them to improve their profits and market share and in addition
they will compete with competitors as well (Torrent-Sellens, 2015).
 Relation with clients: Superior of an association needs to develop healthy relations with
users. For above stated aim, they have to render them items as per their preferences and
requirements.
4.3 Smart objectives
These are stated as below: Specific: Targets need to be set by manager and it has to be particular. For an example:
association wants to enhance their sales in future by 20%. therefore, to attain this, they
need to run or regulate their operations of business in an effective manner. Measurable: Goals which are setted, will be evaluated by manager as this will help them
to examine their success, growth and improvement. For instance: ALDI's superiors are
measuring performance of employees thrice in a month. This will help them to make
appropriate control over business activities. Achievable: Enterprise needs to achieve objectives or goals within certain time span. In
relation to ALDI, they decided to enhance their sales and profits in next two years and
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this is attainable. For this, they will develop some sort of strategies as well as policies.
This will help them to take advantages from competitors at marketplace. As a result,
revenues and market share will get improved effectually (Wheelen and et. al., 2017). Realistic: Coveted targets need to be real, rather than fictitious. It has been examined that
if goals are not real then it will be difficult to achieve it.
 Time bound: It is must for superior to set some time to attain goals and objectives. Like,
company is going to enhance their sales as well as profits within next 2 years.
CONCLUSION
It gets concluded from the project that strategies are a core part of business and its
functions. It is important to frame appropriate and suitable strategies with a course of time so that
better and appropriate working could be promoted. In such aspect, clear mission, vision as well
as objectives need to formulate by business managers. With this concept, appropriate and
suitable environment and organisation audit have to conclude with appropriate identification of
stakeholders. in such aspect strategy get formulate and evaluate such action plan effectively so
that suitable working could increase and rises. At last, management need to implement such
strategies properly so that chances of suitable gain get rises.
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REFERENCES
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Online:
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